A handful of discounted staples can effectively offset the cost of a Costco membership, according to a recent report on the retailer’s biggest savings.
The club’s $65 annual Gold Star Membership, or $130 Executive membership, may look steep to budget-minded shoppers, but the math can flip quickly: a few well-chosen purchases can end up paying for the membership itself.
The issue was raised on Reddit, where a potential member posed the question, “What items (other than gas) do you get to justify the membership if you’re not a bulk buyer?”
“Are the basics enough of a discount that makes the membership worth it?” the poster asked late last month. “I know the excitement of seeing good deals on random items will want me to buy more, but if I really truly only need basics like what i listed, what would you recommend?”
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Reddit users were quick to weigh in, with some pointing to over-the-counter medications such as ibuprofen or antihistamines, as well as paper goods and the popular rotisserie chicken, as being worth the membership.
Another user said smoked salmon alone justifies the fee, while another pointed to the savings from buying diapers at the wholesale club.
To put numbers behind those claims, Business Insider analyzed which Costco items deliver enough savings to offset the cost of a $65 membership.
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The publication reported that it focused on shelf-stable items commonly used throughout the year, comparing prices at Costco with those at retailers such as Amazon, Target and Walmart.
Business Insider reported that it used ChatGPT, an artificial intelligence tool, to estimate annual usage of each item in a two-person household.
The analysis assigned each product a “payback score” to show how much of the membership fee could be offset by buying that item at Costco for a year. A score of 100 indicated the savings matched the cost of the membership, while a score of 200 meant the savings were twice the fee. A score of 50 meant the product recovered half the cost.
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Pet food stood out in the analysis as a major value. A 38-pound bag of Blue Buffalo dog food costs about $65 at Costco, compared with roughly $111 at a typical retailer, enough savings from two purchases to exceed the annual membership fee.
The dog food received a payback score of 713, indicating the savings would offset the membership cost more than six times.
Diapers and baby wipes emerged as another strong value, with a payback score of 373. A jumbo pack of Huggies diapers costs about $50 at Costco, compared with roughly $70 at other retailers, enough savings to offset the membership fee in fewer than four purchases.
Formula delivered similar savings. A large container of Similac sells for about $55 at Costco, compared with about $68 elsewhere, with the analysis showing the membership cost could be recouped after about five purchases, earning a payback score of 240.
Two-pound bags of Starbucks’ Pike Place roast coffee beans sell for about $8.40 per pound at Costco, compared with roughly $12 elsewhere. Based on annual use of 30 pounds, the analysis gave the coffee a payback score of 166, with the membership cost recouped after about 18 pounds.
Savings on toilet paper were smaller. A 30-pack of Charmin costs about $1.10 per roll at Costco, around 37 cents less per roll than at other retailers, producing a payback score of 67 if four packs are purchased in a year.
Business Insider added a caveat, noting that “this analysis assumes no other purchases at Costco, which in our experience is extremely unlikely.”
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